Administrative Requirements - Living Wage and Service Worker Retention Ordinance

Living Wage Ordinance or Living Wage and Service Contractor Worker Retention Ordinances -RFB or RFP will specify whether the Living Wage Ordinance or the Living Wage and Service Contractor Worker Retention Ordinances is/are required.

Living Wage Ordinance (LWO)

Pursuant to Los Angeles Administrative Code, Division 10, Chapter 1, Article 11, Section 10.37 et seq., it is the policy of the City of Los Angeles that contractors/subcontractors who have agreements with the City must comply with all applicable provisions of the Living Wage Ordinance, including paying their employees a minimum "living wage" with health benefits and providing compensated days off.

The Bureau of Contract Administration (BCA) has determined that there is a proprietary interest in applying LWO to all airport employees who provide industry-specific services to or for LAWA. In effect, this determination broadens coverage to include airport employee classifications whose work occurs in non-public and/or secure areas since their work 1) impacts the public’s perceptions of services at LAWA or 2) maintains airport security. The effective date to implement this coverage was May 1, 2010.

Living Wage Ordinance Compliance Requirements:

Contractor agrees to pay employees a living wage – updated July 1st of every year. On September 9, 2009, the Los Angeles City Council unanimously approved an amending ordinance to Living Wage that requires airport employers at all airports in the LAWA system to increase the hourly rate for health benefits of airport employees covered by LWO to $4.50 per hour from $1.25. The new Ordinance became effective on January 17, 2010. Office of Contract Compliance (OCC) of the Department of Public Works, which is the designated administrative agency for the LWO, sent written notice to LAWA contractors and tenants.

As of July 1, 2013, the cash wage will increase to $10.91 and the health benefits will increase to $4.76. If health benefits are not provided by an Airport Employer, then $4.76 must be added to the base hourly wage rate. Thus, the new hourly rate becomes $10.91 for employees with benefits and $15.67 for those without. Further, if an airport employer provides benefits for less than $4.76 per hour, the differential must be added to the hourly wage rate. Contractor must provide at least 12 compensated days off per year for each employee's sick leave, vacation or personal necessity, and at least 10 days off uncompensated. The wage rates are applicable to service contractors, public lessees/licensees, City financial assistance recipients, and their subcontractors that are subject to the Living Wage Ordinance.

As of July 1, 2014, the cash wage will increase to $11.03 and the health benefits will increase to $4.81. If health benefits are not provided by an Airport Employer, then $4.81 must be added to the base hourly wage rate. Thus, the new hourly rate becomes $11.03 for employees with benefits and $15.84 for those without. Further, if an airport employer provides benefits for less than $4.81 per hour, the differential must be added to the hourly wage rate. Contractor must provide at least 12 compensated days off per year for each employee's sick leave, vacation or personal necessity, and at least 10 days off uncompensated. The wage rates are applicable to service contractors, public lessees/licensees, City financial assistance recipients, and their subcontractors that are subject to the Living Wage Ordinance.

Contractor agrees to inform employees making less than $12.00 per hour of the Earned Income Tax Credit and make forms available.

Contractor agrees to permit access to work sites for authorized City representatives to review operations, payroll and related documents.

Contractor agrees not to retaliate against any employee claiming non-compliance or union organizing.

Living Wage and Service Contractor Worker Retention Ordinances (LWO/SCWRO)

Pursuant to LAAC, Division 10, Chapter 1, Article 11, Sections 10.36 et seq. and 10.37 et seq., it is the policy of the City of Los Angeles that successor contractors/subcontractors who have agreements with the City must comply with all applicable provisions of the Living Wage Ordinance (LWO) and Service Contract Worker Retention Ordinance (SCWRO).

Contracts subject to Service Contractor Worker Retention Ordinances, are required to comply with the following requirements in addition to the above:

Contractor agrees to offer to employ and retain for a 90-day period the employees who worked for at least 12 months for the terminated contractor/subcontractors earning less than $15.00 per hour.

Contractor agrees to not discharge without cause the employees retained during the 90-day period.

Contractor agrees to perform a written performance evaluation of each employee retained at the end of the 90-day period.